Most states have regulations that mandate the time frame in which employees should be compensated. As a small business owner, you're responsible for processing and giving employees their paychecks or pay stubs by the due date. On occasion, an employee may be unable to collect her paycheck and would like you to give it to someone else. An authorization form to release a paycheck to the designated individual shows that the employee made the request.

Read up on your state’s paycheck laws to understand your requirements as an employer. For example, if an employee leaves the company, state law may forbid you from holding his paycheck until he returns company property. In this case, you cannot create a form that says you will release final pay after the employee submits company items.

Create the conditions under which paychecks will be released to third parties. For example, terms may include who should pick up the employee’s paycheck in the event of her death or disability and an alternate person in case the employee survives those previously listed. Or, you can create a standard form for picking up paychecks regardless of the situation.

Include the necessary spaces on the form for the employee to fill in. For example, the form should have lines for the employee to write his name, those authorized to pick up his paycheck, his relationship to them, their addresses and telephone numbers, and a space for him to sign and date.

State that the person collecting the paycheck is responsible for delivering it to the employee, if applicable. Also, explain that the paycheck will not be released without proper identification, such as driver’s license or state ID.

Have the designated person sign the release form when she collects the paycheck and make a copy for your file.

Tip

Your state may have laws that explain what should happen to a deceased employee’s final wages. For example, you may be required to make an employee’s unpaid wages payable to his surviving spouse, dependent children, guardians or conservators of his estate.